Month on Month Revenue Growth

Definition

The Month on Month Revenue Growth measures how much Revenue grew from one month to another in percent.

Why use it

MoM Revenue Growth provides a great insight on the growth rate of a business.

Adaptation

If a bunsiness is not yet generating Revenue the MoM Monthly Active User Growth can be a good alternative measure for a company’s growth. MoM User Growth should also be used when the size of the user base is particularly important for the business model to work.

Alias
AbbreviationMoM Revenue Growth
UnitPercentage

 

Calculation

The difference between this month’s revenue and last month’s revenue divided by last month’s revenue gives the revenue growth.

(revenue 2nd month – revenue 1st month)
÷ revenue 1st month
MoM Revenue Growth

Example

In January a business had a revenue of 12.000 € by Feburary its revenue had grown to 13.500 €.

1.500 €
+ 12.000 €
12,5 %